Bombay Rayon Fashions

We recommend a buy in Bombay Rayon Fashions from a short-term perspective. It is apparent from the charts of the stock that it has been on medium-term up trend from July low of Rs 140. Moreover, the stock has been on an intermediate-term uptrend since March low of Rs 80. On August 27, the stock jumped up 7 per cent, accompanied with good volume penetrating key resistance at Rs 200. It is trading well above 21- and 50-day moving averages. The daily relative strength index ( RSI) has entered in to the bullish zone. Beside, both daily and weekly moving average convergence and divergence indicators are hovering in the positive territory. Our short-term outlook on the stock is bullish. We anticipate the stock’s uptrend to prolong until it knocks our price target of Rs 226 in the forthcoming trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 194.

via BL